Folkestone’s real estate funds management subsidiary, Folkestone Funds Management, has announced the Folkestone SOP Opportunity Fund has entered into an agreement to acquire an asset in Sydney Olympic Park.
The six level commercial building at 11 Murray Rose Avenue – currently under construction by developer FDC Construction & Fitout Pty Ltd (FDC) – comprises 5,810 square metres across five levels of office and ground floor retail with basement car parking.
Under the terms of the deal, the fund has entered into an assignment agreement with the vendor, SOP 8D Pty Ltd – an entity associated with FDC – to purchase the interest in the “to-be-created” asset and “to be granted” 99-year lease of the land.
SOP 8D Pty Ltd will continue to develop the asset on behalf of the fund for a fixed payment on practical completion.
As a result, the fund will take leasing, valuation and financing risk but will not take planning or construction risk. The transaction is subject to obtaining Sydney Olympic Park Authority consent.
“We are delighted to have secured 11 Murray Rose Avenue which is our second asset in the Sydney Olympic Park office precinct, following the acquisition of 7 Murray Rose Avenue in 2012 by another Folkestone fund,” Folkestone Managing Director Greg Paramor said.
“Sydney Olympic Park is now a thriving centre for business, sport, entertainment, tourism and residential use, which is enhanced by the area’s strategic position within Sydney,” he said.
Folkestone received commitments from high net worth investors and family offices to invest in the Fund for $24.7 million, being the full amount to be raised by fund.
Practical completion for the commercial building is expected in February 2018.